20. The partnership agreement of Socorro and Torres provides that interest at10% is to be credited to each partner on the basis of average capitalbalances. A summary of Torres Capital account for the year endedDecember 31, 2020 is as follows:Balance January 1Additional Investment, July 1Withdrawal, August 1P 304,50087,00032,625What amount of interest should be credited to Torres Capital account?a. P33,168.75b. P33,440.625C. P35,887.50d. P37,518.7521. Simple and Elegant share profits and losses equally, Simple and Elegantreceive salary allowances of P105,000 and P157,500, respectively, and bothpartners receive 10% interest on their average capital balances. Averagecapital balances are calculated at the beginning of each month regardlessof when the capital contributions and capital withdrawals were made andpartners' drawings are not used in determining the average capitalbalances. Total net income for 2020 is P630,000.SimpleP525,000ElegantP630,000January 1 capital balancesYearly drawings (P7,875 a month)Permanent withdrawals of capital:94,50094,500(63,000)June 3(78,750)May 2Additional investments of capital:July 3October 2210,000e262,5000.What is the weighted average capital for Simple and Elegant respectivelyfor 2020?a. P581,000 and P627,812.50b. P553,000 and P665,000C. P525,000 and P630,000d. P665,000 and P553,000

As posted multiple independent questions we are answering only first question kindly repost the…

Answered: 20. The partnership agreement of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The partnership agreement of X and Y provides that 12% interest per year is to be credited to each partner on the basis of average capital balances. A summary of Y capital for the year ended December 31, 2021 is as follows: Jan 1 Balance P840,000, July 2 Additional investment P240,000, August 1 Withdrawal P90,000, Dec. 31 Balance P990,000 What amount of interest should be credited to ⚫
16. The partnership agreement of Santiago and Generales provided that interest of 10% per annum is to be credited to each partner on the basis of average capital balances. A summary of Generales' capital account for the year ended Dec. 31, 2020 follows: P280,000 Balance, Jan. 1 Additional Investments, July 1 80,000 (30,000) P330,000 Withdrawal, August 1 Balance, Dec. 31 The amount of interest that should eventually be credited to Generales' capital is a. P30,500. b. P33,000. P30,750. d. P34,500. С.
7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summaryof Rap capital account for the year ended December 31, 2015, is as follows:Balance, January 1 P210,000Additional investment, July 1 60,000Withdrawal, August 1 (22,500)Balance, December 31 P247,500What amount of interest should be credited to Rap’s capital account for 2015?
Additional information1. The net profit according to the Profit and Loss account amounted to R500 000 on 28February 2021.2. The partnership agreement made provision for the following:1. Interest on capital must be provided at 15% per annum on the balances in the capitalAccounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the interest rate on capital increases to 18% per annum.2. The partners are entitled to the following monthly salaries: Bobby R11 000Vincent R10 0003. Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made.4. Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.
The partnership agreement of A and B provides that interest at 10% per year is to be credited to each partner on the basis of weighted-average capital balances. The following movements in the capital accounts of A and B is as follows: A, Capital Balance, Jan. 1, 2022 Additional investment, June 1 Withdrawal, October 1 Balance, Dec. 31, 2022 B, Capital Balance, Jan. 1, 2022 Additional investment, April 1 Withdrawal, July 31 Balance, Dec. 31, 2022 Compute the interest allocated to B. 110,000 33,000 (20,000) 123,000 160,000 65,000 (30,000) 195,000
Balances in the ledger at 30 June 2021 R Capital : Tas Capital : Naz 407 000 363 000 Current account: Tas credit balance at 1 July 2020 8 052 Current account: Naz: debit balance at 1 July 2020 2 640 Drawings : Tas Drawings : Naz Profit for the year 88 000 140 800 438 636 Additional Information: The partnership agreement provides for the following that needs to be taken into account: 1. Partners are entitled to salaries as follows: Tas - R8 000 per month, Naz - R10 000 per month. 2. Interest on capital accounts are allowed at 12% per year on each partners capital on a pro-rata basis. Note the following that on 1 January 2021: Tas decreased her capital account by R27 000; and Naz increase her capital account by R17 000. 3. Interest at 10% per year is applicable to the opening balance of each partner's current account. 4. Naz is entitled to an annual bonus equal to 2% of the profit for the year before any appropriation from the profit for the year. 5. The remaining profits or losses are…
Assuming that an interest of 20% per annum is given on average capital and 10. On January 1, 2020, Lim and Pan decided to form a partnership. At the end of the year, the partnership made a net income of P630,000. The capital accounts of the partnership show the following transactions. Lim, Capital Pan, Capital Debit Credit Debit Credit January 1 April 1 210,000 131,250 26,250 June 1 52,500 August 1 September 1 52,500 15,750 26,250 21,000 October 1 5,250 December 1 26,250 the balance of the profits is allocated equally, the allocation of profits should be: a. Lim, P315,000; Pan, P311,850 b. Lim, P321,300; Pan, P308,700 c. Lim, P352,800; Pan, P277,200 d. Lim, P361,200; Pan, P268,800
19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…
The partnership of Toy and Tay provides that interest t 10% is to be credited to each partner on the basis of average capital balances. A summary of Tay Capital account for the year ended December 31, 2016 is as follows: 140,000.00 Balance, January 01 40,000.00 Additional Investment, July 01 15,000.00 Withdrawal, Aug 01 What amount of interest should be credited to Tay capital account for 2016? Select the correct response: P17,250.00 P15,250.00 P16,500.00 P15,375.00
Set 1 1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per anmum. Profit for 2019 was P840,000 and the year end balances on partner's capital accounts are as follows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2019? a. P120,400 b. P126,670 с. Р130,000 d. P140,000 2. Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close their accounts on June 30 each year. On Jan. 1, 2019, Castro joined the partnership. The profit-sharing ratio was revised to become Malaluan 50%, Baral 25% and Castro 25%, after providing for annual salaries as follows: Baral, P20,000 and Castro, P12,000. The partnership profit for the year ended June 30, 2019 was P480,000, accruing evenly over the year. What are the partners' total share in profits for the year ended June 30,…
The capital accounts of Scott and Tucker at the end of the fiscal year 2019 are as follows: Scott, Capital January 1 Balance P210,000 Мay 1 Investment 90,000 October 1 Withdrawal Р60,000 Tucker, Capital January 1 Balance P150,000 April 1 Withdrawal P30,000 The partnership profit for the year ended December 31, 2019 was P300,000. Instruction: Prepare schedule of profit allocation and journal entries to record transfer to profit to the capital accounts under each of the following independent assumptions: 1. Profit is divided 60% to Scott and 40% to Tucker. 2. Profit is divided into ratio of capital balances at the beginning of the period. 3. Profit is divided in the ratio of average capital balance. Interest of 8% is allowed on the average capital and the balance of profit is divided equally. 4. Salaries of P60,000 and P48,000 are allowed to Scott and Tucker, respectively, and the balance of the profit is divided in the ratio of capital balances at the end of the period. 5. 6. Scott is…
1. (a) The partnership of Fatimah and Anisa commenced on 1 January 2020 and accounts are prepared to 31 December annually. Their partnership recorded a profit before appropriation of RM60,000. The partnership agreement provided for the following: Interest on capital and drawings 3% per annum for each partner Fatimah's drawings RM4,200 Anisa's drawings RM1,400 Fatimah's capital contribution RM14,000 Anisa's capital contribution RM7,000 Salary: Fatimah Share on divisible income / (loss): Fatimah Anisa RM28,000 2/3 1/3 Required: Prepare a profit and loss appropriation account. (b) How does the tax treatment apply to the partnership?

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